Flooring business James Halstead PLC (LON:JHD) has told investors that the weak sterling price post-Brexit will be more of a benefit than a hindrance to the company going forward.
The decline in sterling has made its products more affordable to overseas customers as well as improving its margins, the company said.
This was evident in Halstead’s half-year to the end of June, as it posted an increased profit before tax of £45.5mln (H1 2015: £44.2mln) on lower revenues of “226.1mln (H1 2015: £227.3mln).
"Notwithstanding the average exchange rate for the year impacting adversely on turnover, we have continued to progress and as exports represent 67% of our business the decline of sterling post the referendum offers opportunity for further progress,” said chief executive Mark Halstead.
The firm – which, among other projects, installed new flooring at the Central Bank of Malta in the period – said any potential Brexit doubts seem to be “lessening”.
The business said cuts to public sector were more concerning, with demand from both the NHS and in the education both showing a “noticeable” towards the end of the period and into the second half.
It did add that its position as market leader remains unchanged, while it was “optimistic” that the next 12 months would yield yet more growth.
As a sign of this confidence, the company upped its final dividend by 8%to 8.5p.
Elsewhere in the results, the company recorded a cash inflow from operating activities of £40.2mln and had just over £44mln in the bank as of 30 June.
Shares were down 1p to 448p.